Derivatives Q91

91A trader takes a short position in 10 futures contracts at the start of Day 1. The futures price at this stage is $82. The closing price on Day 1 is $75. What amount is added or taken away from the trader’s account?

Option : A
Explanation : The trader has a short position so the fall in price helps him. He will receive: (82 – 75) * 10 = $70.

Forgot your password?

I agree with the Terms.